As of Wednesday, April 9, 2025, Ethereum (ETH), the world’s second-largest cryptocurrency, has hit a grim milestone: its lowest price in two years, dipping below $1,500.

This Ethereum price drop is more than just a number—it’s a signal of turbulence in the crypto market, sparked by an unexpected macroeconomic shock. U.S. President Donald Trump’s sweeping tariffs have sent shockwaves through global markets, and cryptocurrencies are no exception.

With ETH shedding over 60% of its value from its December 2024 peak of $4,100, questions are mounting: Why is Ethereum falling? How do Trump’s tariffs impact crypto? And what does this mean for your portfolio?

Ethereum Price Today Hits March 2023 Lows

Ethereum’s decline didn’t happen overnight. As of today, April 9, 2025, ETH trades at $1,476, down from a high of $4,100 in December 2024—a staggering 64% drop.

According to CoinMarketCap data, over the past 30 days, the ETH price has dropped by more than 30%, and in just the last 24 hours, it has declined by nearly 6%. The total market capitalization of Ethereum has also significantly contracted, falling to $178 billion.

Market data shows over $400 million in Ethereum Ethereum Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Read this Term liquidations in the past 24 hours alone, with long positions bearing the brunt at $341 million. This deleveraging event reflects panic selling, a common reaction when risk assets like cryptocurrencies face external shocks.

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Ethereum vs. Bitcoin – A Historical Struggle Hits a Five-Year Low

This isn’t Ethereum’s first rodeo with volatility; since its inception, ETH has only outperformed Bitcoin 15% of the time, often lagging during broad market downturns.

Why the disparity? Bitcoin’s “digital gold” narrative thrives in risk-off environments like today’s tariff-driven uncertainty, while Ethereum’s growth story—tied to network usage and layer-2 scaling—struggles to resonate amid a broader market slump. For retail investors, this historical underperformance is a wake-up call: ETH’s price analysis often hinges on BTC’s trajectory.

The ETH/BTC ratio’s plunge to 0.018 on April 9—the lowest since December 2019, when ETH hit $125 and BTC traded at $7,000—signals more than just a price drop; it’s a barometer of investor sentiment. At 0.018, it takes 55 ETH to buy 1 BTC, a stark contrast to 2021’s high of 0.08 (12.5 ETH per BTC).

The ETH/BTC has now underperformed holding BTC for 85% of trading days...

A truly remarkable decline. pic.twitter.com/zsXpDWZSBi

— _Checkmate 🟠🔑⚡☢️🛢️ (@_Checkmatey_) April 8, 2025

"ETH is entering a very concerning phase as its downward trend continues with little or no sign of a possible resurgence," said Tracy Jin, COO of crypto exchange MEXC. "On-chain activity is showing a clear sign of fatigue; daily transactions, gas usage, and DeFI volume are steadily declining, signaling that users and developers may gradually migrate to other chains that offer more scalability and cost efficiency. DEX volume has also decreased by almost 50% from its peak in late 2024, with the consistent delay of the Pectra upgrade adding further uncertainty to the network's future."

Why Is Ethereum Falling? Trump’s Tariffs Affect Crypto

The White House imposed reciprocal tariffs—starting at 10% on all imports and escalating to 25% on key sectors like automobiles—targeting major trading partners like China, Canada, and Mexico. By April 2, these policies were in full swing, with threats of further hikes looming. For retail investors, the connection might not be obvious, but here’s the breakdown:

Cryptocurrencies like Ethereum are risk assets, thriving in bullish, low-interest-rate environments and faltering when investors turn risk-averse. Trump’s tariffs threaten higher inflation and slower global growth, reducing liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term and pushing capital toward safe havens like gold (up 19% year-to-date to $3,115) and the U.S. dollar.

"It's hard to find a solid, logical explanation for why Ethereum has dropped nearly 40% since early November," Dr Kirill Kretov from CoinPanel commented for FinanceMagnates.com. "There are a few theories floating around: frustration with Vitalik’s decisions, token dumping from a wallet linked to Trump, liquidity pulled by L2s like Base or shifted to alternatives like Solana. But these sound more like convenient public excuses rather than root causes."

As Kretov explains, earlier this year, the ByBit hack saw nearly 500,000 ETH (worth $1.3B) stolen and rapidly laundered through DEXs into BTC. ETH dropped about 25% from $2800 to $2100 in just two weeks, and that was with a clear and massive selling event. "But this current decline from over $4,000 in December to where we are now is deeper, more gradual, and oddly persistent. It feels like something bigger is happening behind the scenes," he added.

Falling #Ethereum Could Be the Canary In the Coal Mine - Ether may be on the way to revisiting its next round-number support level at $1,000, with implications for risk assets. Full report on Bloomberg here: https://t.co/vsuw0mMLAA {BI COMD}#commodities #gold #bitcoin… pic.twitter.com/61fhprgKPn

— Mike McGlone (@mikemcglone11) April 6, 2025

How Low Can Ethereum Go: Is $1,000 ETH’s Final Bottom?

Ethereum’s current price action isn’t uncharted territory. Cointelegraph highlights a fractal pattern—repetitive cycles seen in 2018 and 2022—that’s eerily similar to today’s Ethereum price drop. In those years, ETH rallied to euphoric highs (e.g., $1,448 in 2018, $4,878 in 2021) before crashing into prolonged bear markets. Each cycle shared telltale signs:

• Bearish Divergence: Higher price peaks paired with lower highs in the Relative Strength Index (RSI), signaling weakening momentum.
• Fibonacci Retracements: After topping out, ETH retraced through key Fibonacci levels, often bottoming near the 0.618–0.786 zones.
• Oversold Conditions: Cycle lows formed when RSI dipped below 30, a classic oversold threshold.

Cointelegraph’s fractal analysis pegs the next targets at $990–$1,240, aligning with the 0.618–0.786 Fibonacci zone. If history repeats, $1,000 could indeed be the final bottom.

From my perspective, however, much depends on how Ethereum’s price behaves by the end of this week. If it closes below $1,500—and thus below the support zone established in 2023—I anticipate further declines. However, if it closes above this level, marked in red on the chart, I’ll forecast a stronger rebound. My first target? The highs from March 2023, which align with the lows from last year’s summer vacation period, around $2,121.

Beyond technicals, Ethereum’s onchain data offers another clue. The Net Unrealized Profit/Loss (NUPL) metric, tracked by Glassnode, has slipped into “capitulation” territory—where most ETH holders are holding at a loss. This isn’t new: in March 2020, NUPL turned negative just before ETH rebounded from $90 post-COVID crash. In June 2022, it hit capitulation again, preceding a low of $880. Today, with ETH at $1,400 and NUPL echoing these prior setups, the parallels are striking.

"With most long-term investors now holding at a loss, Ethereum could be at risk of falling out of favour with its long-term adopters. According to CoinGlass, open interest in Ethereum futures fell to its lowest level since mid-March this week at $17 billion. At the end of last month, the contract value was approaching $24 billion, but over the past two weeks, OI for ETH in the crypto derivatives market has significantly decreased," added Jin.

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Ethereum News, FAQ

Will Ethereum Rise Again?

Yes, Ethereum is likely to rise again—but timing is everything. Today’s setup mirrors those bottoms: the Net Unrealized Profit/Loss (NUPL) is in “capitulation” territory, and RSI (at 32) nears oversold (<30), suggesting a rebound could be near if it hits $1,000–$1,240. My own analysis aligns here: if ETH closes above $1,500 by week’s end—holding the 2023 support zone—a stronger rally to $2,121 (March 2023 highs) is plausible.

Is Ethereum a Good Buy Right Now?

It depends on your strategy. For long-term retail investors, ETH at $1,400—potentially dropping to $1,000—offers a compelling entry if it stabilizes near the fractal floor. Over 50% of ETH’s supply was bought between $1,000–$2,600, creating a high-demand zone (Cointelegraph), and capitulation often marks bottoms. Dollar-cost averaging here could mitigate risk. For traders, it’s trickier: RSI hasn’t hit oversold, and a close below $1,500 might signal further declines to $1,000 or lower.

Why Is ETH Falling?

Ethereum’s fall is a perfect storm. Trump’s 2025 tariffs—starting at 10% and escalating to 25%—have sparked a risk-off wave, slashing crypto market cap by $800 billion since January (Bloomberg). ETH, a volatile altcoin, dropped 65% from $4,095 in three months, outpacing Bitcoin’s 23% decline.

How Much Will 1 ETH Cost in 2030?

Optimists like Kain Warwick see $20,000+ if DeFi and NFTs rebound. Bearish risks—like prolonged tariff wars or regulatory hurdles—might cap it at $3,000–$5,000. For now, $10,000 is a balanced guess, but monitor macro trends and ETH/BTC momentum (0.018 today) for shifts.

Want to dive deeper into Ethereum’s price plunge and what it means for your crypto investments? Check out expert insights and the latest market analysis at FinanceMagnates.com to stay ahead of the curve in this turbulent crypto landscape.